3 FTSE Pub Stocks in Focus After JD Wetherspoon Reports Losses In H1 2021

Source: Fotiev, Shutterstock

Summary

• UK-based pub chain JD Wetherspoon on 19 March reported a loss before tax of £59.3 million in H1 2021 due to lockdown restrictions.
• Company chairman Tim Martin said that due to the government’s changing guidelines it was difficult to chalk out a sales pattern.

UK-based pub chain JD Wetherspoon (LON: JDW) on 19 March reported a loss before tax of £59.3 million in H1 2021 for the period ended on 24 January, compared to a profit before tax of £42 million in the same period a year ago due to lockdown restrictions amid the pandemic affecting revenues.

The pub chain’s revenue fell by 53.8 per cent to £431.1 million in H1 2021, while its like-for-like sales fell by 53.9 per cent.  The board did not declare a dividend.

Also Read: JD Wetherspoon To Open Beer Gardens From 12 April

Company chairman Tim Martin said in an outlook statement that due to the changing guidelines set by the UK government it was difficult to identify a sales pattern for the company.

In this article, we take a look at some 3 other FTSE-listed pub and beer stocks with year-to-date returns of over 20 per cent.

1. Marston's plc (LON: MARS) 

The FTSE All Share-listed company Marston's plc is a UK-based brewery and hotel operator headquartered in Wolverhampton. On Friday, the company announced that it would reopen three of its pubs, The Anchor, Redbridge, Pitcher & Piano and The Hinkler in Southampton, from 12 April onwards as lockdown restrictions ease.

Moreover, about 70 per cent of the brewery’s English pubs are set to reopen in a few weeks’ time.

Separately, the company confirmed the acquisition of eight pubs from Welsh brewery SA Brain & Co in a deal valued at about £4 million, on 10 March. The news comes after Marston's struck a deal to take on SA Brain’s estate of 156 pubs in 2020.

Marston's shares were trading at GBX 94.25, down by 2.69 per cent on 19 March at 11:30 AM GMT+1, while the FTSE All Share index stood at 3,830.37, down by 0.82 per cent for the same period.

The company’s market cap stood at £614.08 million, while its year-to-date return stood at 24.68 per cent and its five-year average dividend yield was at 6.9 per cent.

Also Read: Marston's (LON:MARS) to take over 156 Brains pubs in Wales, save 1.3k jobs

2. Mitchells & Butlers (LON: MAB) 

FTSE 250-listed British pub company Mitchells & Butlers is facing investor backlash after announcing plans of replacing the guaranteed pay awards of the firm’s bosses to a fixed pay scheme from the current performance based one. The announcement comes ahead of the pub operator’s annual meeting slated for later this month.

The company’s shares were trading at GBX 307.50, down by 2.69 per cent on 19 March at 11:44 AM GMT+1, while the FTSE 250 index, which it is a part of, stood at 21,449.61, down by 0.55 per cent for the same period.

The company’s market cap stood at £1.88 billion, while its year-to-date return stood at 41.61 per cent and its five-year average dividend yield was at 1.5 per cent.

3. Fuller, Smith & Turner plc (LON:FSTA)

Fuller, Smith & Turner plc is a FTSE All Share-listed brewery based in the UK. The brewery announced an overhauled look for its flagship beer -- London Pride -- on 16 March which included a new typography, logo, point of sale materials and other aspects with an updated look.

The brewery’s parent company Asahi Group (TYO: 2502) said the new brand identity would help the flagship drink recover business after on-premise pubs are slated to reopen later this year.

Fuller's shares were trading at GBX 872.00, down by 2.02 per cent on 19 March at 12:07 AM GMT+1, while the UK tourism and leisure sector index stood at 9,207.75, down by 2.34 per cent for the same period.

The company’s market cap stood at £287.89 million, while its year-to-date return stood at 26.81 per cent and its five-year average dividend yield was at 1.7 per cent.